FICCI calls for lower personal tax rates, tweaks in Taxation Bill to boost economy
The industry body also wants the government to reintroduce the classical tax system of dividend taxation in the hands of the shareholders with protection for small shareholders
- Dec 16, 2019,
- Updated Jan 7, 2020 2:38 PM IST
Industry body Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested reduction in personal tax rates to enhance consumption and spur overall demand for goods and services, among a slew of measures to prop up the Indian economy.
In its pre-budget memorandum 2020-21, FICCI also called for clarification and tweaks in the Taxation Laws (Amendment) Bill, 2019, to make the best use of the reduction in corporate tax rates for existing and new domestic companies and the withdrawal of higher surcharge for non-corporates on certain capital market transactions provided through the Bill. It wants tax exemption on the expenses incurred by the taxpayer on activities related to CSR and profit linked tax deduction for affordable housing projects. A number of suggestions related to both direct as well as indirect taxes have also been proposed.
On personal tax, FICCI has proposed a revised tax slab where income up to Rs 5 lakh will be exempt. While Rs 5 lakh to Rs 10 lakh will be taxed at 10 per cent, income between Rs 10 lakh to Rs 20 lakh will be taxed at 20 per cent. Income above Rs 20 lakh will attract 30 per cent tax. Presently, income above Rs 10 lakh is taxed at this rate.
'Don't increase GST': Food sellers write to Sitharaman amid tax hike speculations
Industry body Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested reduction in personal tax rates to enhance consumption and spur overall demand for goods and services, among a slew of measures to prop up the Indian economy.
In its pre-budget memorandum 2020-21, FICCI also called for clarification and tweaks in the Taxation Laws (Amendment) Bill, 2019, to make the best use of the reduction in corporate tax rates for existing and new domestic companies and the withdrawal of higher surcharge for non-corporates on certain capital market transactions provided through the Bill. It wants tax exemption on the expenses incurred by the taxpayer on activities related to CSR and profit linked tax deduction for affordable housing projects. A number of suggestions related to both direct as well as indirect taxes have also been proposed.
On personal tax, FICCI has proposed a revised tax slab where income up to Rs 5 lakh will be exempt. While Rs 5 lakh to Rs 10 lakh will be taxed at 10 per cent, income between Rs 10 lakh to Rs 20 lakh will be taxed at 20 per cent. Income above Rs 20 lakh will attract 30 per cent tax. Presently, income above Rs 10 lakh is taxed at this rate.
'Don't increase GST': Food sellers write to Sitharaman amid tax hike speculations